The Bridge: Kim K is the latest in the celebrity world to land in hot water following a foray into cryptocurrency. She’s been slapped with a hefty fine from the SEC, and it’s cost her some street cred. Are we witnessing a heightened awareness from younger generations where their celebrity idols are concerned?
Shills and Valleys
Kim Kardashian, ex-wife of aforementioned Ye and arguably one of the most powerful influencers in the world, got busted by the SEC for backing a specific cryptocurrency without disclosing that she’d been paid to do so. Whoops.
This move is considered by many to be a shot across the bow from the entity, warning other celebrities not to tout securities in a historically volatile market.
It’s an easy scenario to imagine: a young person glued to Instagram sees a post from the highly glamorous and ultra-wealthy Kim K, advising her followers to spend their money a certain way. They too can be rich and glamorous, she seems to say – all they have to do is buy this coin or that coin. So easy! 🤑
Then the market buckles, the pump and dump is revealed for what it is, or whatever other likely scenario unfolds, leaving the poor kid having to explain to mom why there’s a few hundred (or thousand?) dollars missing from the account.
These practices are predatory, which is in large part why the SEC got involved.
Celebrities and influencers have an extreme level of control over young people today, to a degree that is nearly unfathomable to anyone who grew up without the internet. From product endorsements to beauty brands, there’s an almost hypnotizing degree of influence from behind the screen.
It’s important for young people to be hyper aware of the potential pitfalls of following financial (or other) advice from celebs. Fiscal responsibility is one thing, and social responsibility is an entirely different game.
Fortunately, we’re seeing a level of awareness from Gen Z that gives us a ton of hope. Rather than lemmings running toward a cliff, younger gens are sitting safely on the sidelines, calling to each other for backup and support through the same technology.